Quantitative Analysis for Management, 13/e

Discussion Questions and Problems

Discussion Questions

1. M3-1 What is the purpose of conducting break-even analysis?

2. M3-2 Under what circumstances can the normal distribution be used in break-even analysis? What does it usually represent?

3. M3-3 What assumption do you have to make about the relationship between EMV and a state of nature when you are using the mean to determine the value of EMV?

4. M3-4 Describe how EVPI can be determined when the distribution of the states of nature follows a normal distribution.

Problems

1. M3-5 A publishing company is planning on developing an advanced quantitative analysis book for graduate students in doctoral programs. The company estimates that sales will be normally distributed, with mean sales of 60,000 copies ...